An Analysis on the Competitive Dynamics and Co-opetition Strategies in the Global Chipset Industry
Date Issued
2004
Date
2004
Author(s)
Lee, Pey-Shyuan
DOI
zh-TW
Abstract
Since Intel jumped into the industry field in 1994, PC Chipset industry has become a highly competitive arena in which the pace of technological change is getting fast and industry leadership is both driven by architecture innovation and adequate co-opetition strategy undertaken by major players. Of interest is VIA, which was a fringe firm, surpass Intel’s leading position in the architecture warfare between Rambus and PC 133. Moreover, the emergence of system-on-chip (SOC) technology not only changed the industry boundary but also the competitive positions among firms. Such a dynamic competition provides an ideal research context for exploring issues concerning industry competitive dynamics and co-opetition strategies, which constitutes the focus of the present study.
Specifically, this research attempts to explore the following three issues: (1) Why will Intel succeed in leading continuous platform changes but fail in Rambus battle? (2) How did the changing industry structure affect major players’ positions and reaction? (3) How could a firm in such a competitive context characterized by changing industry boundaries formulate effective better co-opetition strategies?
This research found that: (1) The dominant firm, Intel, exercised its platform leadership not only through architectural innovation, which led to the standards of peripheral components, but also by stimulating application innovation in complementary markets. (2) In the fast changing environment, chipset industry is gradually evolving to price-war、short-lifecycle、cross-fields competition. In order to maintain survival, firms not only have to surpass competitors in price, quality, timing, know-how, barriers building, and capital cumulating, but also have to constantly create new competence. (3) While the industry boundary becomes blur, the industrial players should be capable of managing more complicated games. Instead of concentrating on competition, firms must learn how to use value net framework to work with a variety of co-opetitors. Strategic implication and suggestions to future research are also discussed.
Specifically, this research attempts to explore the following three issues: (1) Why will Intel succeed in leading continuous platform changes but fail in Rambus battle? (2) How did the changing industry structure affect major players’ positions and reaction? (3) How could a firm in such a competitive context characterized by changing industry boundaries formulate effective better co-opetition strategies?
This research found that: (1) The dominant firm, Intel, exercised its platform leadership not only through architectural innovation, which led to the standards of peripheral components, but also by stimulating application innovation in complementary markets. (2) In the fast changing environment, chipset industry is gradually evolving to price-war、short-lifecycle、cross-fields competition. In order to maintain survival, firms not only have to surpass competitors in price, quality, timing, know-how, barriers building, and capital cumulating, but also have to constantly create new competence. (3) While the industry boundary becomes blur, the industrial players should be capable of managing more complicated games. Instead of concentrating on competition, firms must learn how to use value net framework to work with a variety of co-opetitors. Strategic implication and suggestions to future research are also discussed.
Subjects
晶片組產業
競爭動態
競合行為
平台領導
Competit
PC Chipset Industry
Platform Leadership
Type
thesis
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